Looking to grow your savings in Ontario? High-interest savings accounts (HISAs) offer a compelling solution. Compared to traditional savings accounts, HISAs boast significantly higher interest rates, allowing you to earn more on your hard-earned cash.
This guide explores ten of the best high-interest savings accounts currently available in Ontario, helping you make an informed decision for your financial goals.
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High-Interest Savings Accounts: A Glimpse into the Top Contenders
1. Simplii Financial High-Interest Savings Account: Flexibility and Strong Rates
Simplii Financial’s HISA stands out for its combination of flexibility and competitive rates. There’s no need to lock your money away for extended periods, and you won’t encounter any monthly fees.
Key Features:
- Regular interest rate: 0.40% to 0.65% (up to $500,000), 1.25% (over $500,000), and a limited-time promotional rate of 6.00% (up to $500,000)
- No monthly fees
- No minimum balance requirement
- Free transfers and transactions
- Easy access to your savings
2. EQ Bank Personal Account: All-in-One Savings and Chequing
The EQ Bank Personal Account, formerly known as Savings Plus, offers a unique blend of a chequing account’s functionality with a high-interest savings option.
Key Features:
- Current interest rate: 2.50% (or 4.00% with direct deposit or pre-authorized payments)
- Unlimited transactions with no fees on everyday banking activities
- Free transfers, bill payments, and Interac e-transfers
- Comes with a debit card for ATM withdrawals and cashback on purchases
3. KOHO Earn Interest: High-Yield Savings with Cashback Perks
KOHO offers a unique proposition with its Essential account. You’ll earn a compelling 5.00% interest rate on your entire balance, along with 1% cashback on various spending categories like groceries, restaurants, gas, and transportation.
Key Features:
- 5.00% interest rate on your entire balance
- 1% cashback on specific spending categories
- Free access to debit transactions, e-transfers, bill payments, and direct deposits
- A low $4 monthly fee is waived with recurring deposits or savings
4. Neo Financial High-Interest Savings Account: Straightforward Savings with High Rates
The Neo Financial HISA offers a straightforward approach with a competitive 4.00% interest rate on your deposits. It boasts free transactions and an auto-save feature to help you effortlessly grow your savings.
Key Features:
- 4.00% interest rate on deposits
- Free transactions
- Auto-save feature for automated savings
- CDIC protection on your deposits
5. Scotiabank MomentumPLUS Savings Account: Potential for High Rates with Bonuses
While the Scotiabank MomentumPLUS Savings Account’s regular interest rate sits at 1.40%, it offers the potential for significantly higher returns through welcome bonus offers and tiered interest rates for longer savings periods.
Key Features:
- Regular interest rate: 1.40%
- Potential for higher rates with welcome bonuses (up to 5.60% for a limited time)
- Tiered interest rates for longer savings terms
- No monthly fees
- No minimum balance requirement
6. Tangerine Savings Account: Convenience and Goal-Oriented Features
The Tangerine Savings Account might have a lower interest rate (0.70%) compared to some on this list, but it compensates with user-friendly features and a focus on goal-oriented saving.
Key Features:
- Interest rate: 0.70%
- No monthly fees or service charges
- No minimum balance requirement
- Automatic Savings Program (ASP) to help you reach savings goals
- Personalized savings goal-setting and visualization tools
7. Motive Savvy Savings Account: High-Yield Option with Transaction Limits
The Motive Savvy Savings Account boasts a high 4.10% interest rate, making it one of the most attractive options on this list in terms of returns. However, it’s crucial to consider the transaction limitations.
Key Features:
- Interest rate: 4.10%
- No monthly fee
- Free unlimited transfers between Motive accounts
- Two free monthly transactions (additional transactions cost $5 each)
- Interac e-transfers cost $1 each
8. Saven Financial High-Interest Savings Account (Ontario Only): Competitive Rates and Easy Access
This HISA, exclusive to Ontario residents, offers a competitive 4.20% interest rate, making it a strong contender for those seeking high returns. Additionally, you’ll enjoy the benefits of free transfers and monthly interest deposits.
Key Features:
- Interest rate: 4.20%
- No monthly account fees
- Free transfers
- Monthly interest deposits
- No minimum balance requirement
9. Motusbank High-Interest Savings Account: Straightforward Savings with No Fees
The Motusbank High-Interest Savings Account provides a no-frills approach with a compelling 2.50% interest rate on your entire balance. There are no monthly fees to worry about, and you won’t be required to maintain a minimum balance. Additionally, Motusbank offers unlimited debit purchases and withdrawals, making it a convenient option for everyday use.
Key Features:
- Interest rate: 2.50%
- No monthly fees
- No minimum balance requirement
- Unlimited debit purchases and withdrawals
Choosing the Right High-Interest Savings Account for You
With a variety of HISAs available, selecting the perfect one depends on your individual needs and priorities. Here are some key factors to consider:
- Interest Rate: Naturally, the interest rate is a crucial factor. Compare the rates offered by different institutions and choose the one that aligns with your savings goals.
- Fees: Be mindful of any monthly account fees or transaction limitations. Some accounts might have a higher interest rate but charge fees that could erode your returns.
- Minimum Balance Requirements: Not all HISAs have minimum balance requirements, but some do. Ensure you can comfortably maintain the required balance to avoid any penalties.
- Accessibility: Consider how easily you’ll need to access your funds. Some HISAs might have restrictions on withdrawals or transfers compared to traditional savings accounts.
- Additional Features: Certain HISAs offer additional features like automatic savings tools, cashback rewards, or goal-setting functionalities. Choose an account with features that complement your saving habits and goals.
The Bottom Line
High-interest savings accounts are a valuable tool to maximize your returns on your savings in Ontario. By carefully considering the factors mentioned above and exploring the options presented in this guide, you can make an informed decision and select the HISA that best suits your financial needs and goals.
Remember, it’s always wise to stay updated on interest rate fluctuations and re-evaluate your HISA choice periodically to ensure you’re earning the best possible return on your hard-earned money.